It’s been hard to avoid the headlines about Inflation and increasing grocery prices. . With rising food prices and other economic factors, household budgets are under pressure and shoppers are struggling to purchase not just what they want but in many cases, what they need. Subsequently, brand loyalty has steadily declined with 86% of shoppers switching brands for budget friendly options. This behavior can be seen across all generations, even Gen X and Baby Boomers, who were previously seen as brand loyalists. It’s interesting to note that despite certain stereotypes, all generations:
- Are using coupons to help combat inflation
- Are using social media platforms and influencers to aid with food shopping decisions
Research by Inmar Intelligence shows that digital coupons are the most-redeemed promotional method, with a 20% increase in share of redemption in 2022.
Inmar Intelligence also states that 74% of shoppers are looking for savings on food items with 60% living paycheck to paycheck. In this article, we will explore how food inflation is affecting different generations, how they’re adapting and how modern Weekly Ad technology can help you maintain brand loyalty and make life easier for your shoppers.
ALL GENERATIONS ARE BATTLING FOOD INFLATION
Gen Z: 62% of Gen Zers are likely to switch retailers due to the need to balance budgets. Typically, they make one grocery trip per week, and their food choices are fueled by online research. They use digital platforms to compare prices, find discounts and plan their grocery shopping to save money. 87% of Gen Zers reported that having a coupon encouraged them to buy more, sooner or try out a new product.
Millennials: 53% of millennial parents are struggling with the bare essentials. With their budgets under pressure, millennials tend to make a grocery list and stick to it. 68% plan food shopping around specials and coupons with 71% using digital coupons (the highest of all generations). They make up most of the online shopping demographic, and are driven by convenience and time saving options.
To inspire millennials to purchase from you, you’d need to get on their grocery list by serving them relevant offers and promotions. They expect brands to personalize promotions based on their spending habits.
Gen X: Gen Xers are often juggling the responsibilities of caring for both their children and aging parents. They have been stereotyped as the most brand loyal of all generations. However, food inflation has them switching brands even more than millennials, with 77% expressing concern for food affordability. To save money, Gen Xers use a variety of promotional methods such as coupons and 3rd party incentives at a high frequency. 63% find grocery product inspiration on Facebook, through family and friends.
Gen Xers are more likely to share promotions with friends and family. Reward/referral programs are highly recommended to rebuild your brand loyalty with this generation.
Baby Boomers: Boomers are often unfairly maligned as not being as tech-savvy as younger generations. That is not necessarily the case with a whopping 59% currently using digital coupons and 40% of Boomers expecting their coupon usage to increase in 2023. In addition to digital coupons, they also find savings on or inside product packaging and Sunday newspaper inserts.
When targeting Boomers, a balanced promotional mix is recommended. Boomers are less likely to change their eating habits, but likely to change their buying habits to combat inflation. Therefore, personalized content is crucial in driving them to your grocery store.
HOW CAN WEEKLY ADS HELP THESE SHOPPERS?
Weekly Ads have been around for a long time with most grocers and retailers having taken the step of digitizing and hosting them on their own site.
However, many are not aware of what the modern Weekly Ad can provide both in regards to shopper experience but also the valuable insights they can gather on their shoppers and how that can be used to drive additional traffic to both physical and online stores.
As we’ve seen above, all shopper groups are actively seeking relevant promotions to assist to balance their household budgets.
Digital providers such as Red Pepper are providing shopper insights gained from the Weekly Ad to savvy digital marketers and identifying which products are of most interest to different audiences.
Utilizing our proprietary technology we can then deliver relevant, personalized and interactive offers across multiple ad networks targeting not only retailers existing shoppers but also those of their competitors.
One grocer saw an 89% uplift in sales of products identified by our Localized Dynamic Promotions technology.
The modern version of the Weekly Ad is a valuable tool for grocers in today’s economy to stay ahead of the competition. With rising costs affecting each generation, it’s crucial for shoppers to stay within household budgets. Weekly ads make it easier to do just that, by providing relevant, personalized offers to assist shoppers navigate rising food prices and drive traffic and sales for retailers.
If you’d like more insight on how the modern Weekly Ad can assist you to inform and influence the shopper of today our team is available to assist you. Flick us a message here and we’ll be in touch